Cybersecurity firms minimize the risk and allow people to use the internet in a safe and secure manner. These companies shield businesses from cyber criminals. Cybersecurity professionals use software to detect and address issues before they get serious.
Investors can profit by finding industries with high demand and plenty of growth prospects. As data continues to proliferate the web, cybersecurity companies should continue to experience impressive growth rates. The cybersecurity market is projected to grow at a CAGR of 9.7% from now until 2030. Several corporations have positioned themselves to benefit from tailwinds. These are some of the top cybersecurity stocks that long-term investors may want to consider.
Crowdstrike (CRWD)
Crowdstrike (NASDAQ:CRWD) has been outperforming the stock market for several years. Shares are up by 58% year-to-date (YTD) and have soared by 480% over the past five years. The cybersecurity giant is a recent addition to the S&P 500 and continues to deliver impressive revenue growth.
Crowdstrike reported 33% year-over-year (YOY) revenue growth in Q1 2025 and now has $3.65 billion in annual recurring revenue. Net income came to $42.8 million compared to $500,000 in the same quarter last year.
The company is incorporating artificial intelligence to keep people safe. Charlotte AI makes it easier for cybersecurity professionals and teams to detect issues in real-time and perform mundane tasks in a shorter amount of time. Crowdstrike has a lofty valuation, but profit margin expansion can lead to promising long-term gains.
Wall Street analysts are bullish on the company. Crowdstrike is rated as a “Strong Buy” among 31 analysts. The highest price target of $440 per share suggests a 13% upside.
CommVault Systems (CVLT)
CommVault Systems (NASDAQ:CVLT) is a data security firm that helps clients stay on top of their data from one central cloud-based platform. The company has an annual recurring revenue model that recently topped $770 million. That’s up by 16% YOY.
Unlike most cybersecurity stocks, CommVault is a smaller company with a reasonable valuation. It only has a $5.5 billion market cap and a 33 P/E ratio. However, the stock has done its part in beating the market. Shares are up by 61% YTD and have gained 143% over the past five years. Investors who like Crowdstrike as a company, but believe the valuation is overstretched, may want to give CommVault Systems a closer look.
Wall Street hasn’t been covering this stock as much, but a recent price target of $140 per share suggests a 13% upside from current levels. CommVault System’s revenue and earnings have been accelerating in recent years. Revenue increased by 10% YOY in Q4 2024.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) operates in numerous verticals, including cybersecurity. Many companies store their data on reliable and secure cloud platforms. Microsoft is one of the leaders in the industry with Azure. The platform is a part of Microsoft Cloud revenue which hit $35.1 billion in the third quarter of fiscal 2024. Cloud revenue increased by 23% YOY while overall revenue was up by 17%.
The tech giant is also expanding its cybersecurity market share with Copilot for Security. This AI tool makes it easier for small businesses to monitor their digital defenses and take decisive action against threats. Microsoft has many bulls in Wall Street and is rated as a “Strong Buy.” The average price target suggests a 7% upside.
Microsoft is the only stock on this list that isn’t a pure cybersecurity play. Investors also get exposure to LinkedIn, Xbox, Bing, Microsoft’s suite of business software and other segments. The well-diversified stock is up by 26% YTD and has gained 241% over the past five years.
On this date of publication, Marc Guberti held long positions in CRWD, CVLT, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.